Here is the rewritten article in Markdown format:

Financial Crime Trends in Malta: What You Need to Know

=====================================================

Malta’s financial sector has been grappling with the evolving nature of financial crime, as criminals continually find new ways to disguise illicit economic benefits. With this trend showing no signs of slowing down, it is crucial for organisations to be equipped to manage the risks associated with these practices.

Main Pillars of Sound Financial Crime Compliance in Malta

Establishing a Culture of Compliance

According to experts, establishing a culture of compliance within an organisation is key to effective financial crime compliance (FCC) program development and implementation. This requires board members and senior management to demonstrate their commitment to compliance by setting high standards for employees and linking remuneration packages to compliance objectives.

Risk Assessments

Risk assessments are another critical component of FCC, as they help organisations identify, measure, and monitor risk exposures based on their business model, services, products, customer interactions, and geographical locations. Thorough risk assessments ensure that policies and procedures are proportionate and adequate, protecting the organisation’s value from legal, regulatory, and reputational risks.

Internal Policies, Procedures, Systems, and Controls

Comprehensive FCC Program

A comprehensive FCC program relies heavily on internal policies, procedures, systems, and controls to manage financial crime risks. These policies establish parameters for risk management, while procedures translate these into workable practices that are regularly updated. Internal systems and controls ensure the program functions as intended, with checks from compliance and internal audit functions.

Risk-Based Due Diligence in Malta

Understanding Customer, Counterparty, and Asset Risks

Understanding customer, counterparty, and asset risk assessments is crucial for organisations operating in Malta. Risk-based due diligence involves assessing these risks and applying measures to manage them. Technological tools facilitate this process, ensuring efficient and seamless onboarding and assessment.

Employee Training and Awareness Programmes

Well-Trained Employees

Well-trained employees with strong analytical skills are essential for effective financial crime risk management. Continuous training programmes should address emerging trends and cover legislative changes, policies, procedures, systems, and controls.

Designated Compliance Function in Malta

Compliance Function

A compliance function is vital for ensuring organisations operate within the law and internal policies. A risk-based compliance monitoring plan is a cornerstone of an effective compliance function, which advises on innovative business practices that are compliant with applicable legislation.

Independent Testing of Financial Crime Compliance Programmes

Internal Audits

Internal audits play a critical role in testing FCC programmes to ensure they align with policies and regulatory requirements. These audits should be conducted regularly, focusing on high-risk areas, and results reported to the board for oversight.

Conclusion

Financial crime compliance is not just a concern for regulated entities but for all organisations operating in Malta. With the ever-evolving technological landscape and innovative business models, managing financial crime has become a critical challenge that requires a dedicated management team, robust risk assessments, systems, policies, and procedures, and knowledgeable employees to navigate safely through this dynamic landscape.